J.C. Penney first quarter same-store sales fall 16.6 percent

J.C. Penney Co Inc on Tuesday said that same-store sales in the first quarter of the fiscal year fell 16.6 percent, a deeper than expected slide in business.

In 2012, Penney suffered a steep drop in sales after former Chief Executive Ron Johnson ended most coupons and sales events which put off Penney’s longtime, price conscious shoppers.

Johnson was ousted last month and replaced by his predecessor Myron Ullman, who had increased the pace of sales and overseen an ad campaign aimed at winning back shoppers.

Penney reported quarterly sales of $2.64 billion, below the $2.74 billion Wall Street was expecting, according to Thomson Reuters I/B/E/S. Analysts expected same-store sales, or sales at stores open at least year, to be down 13.2 percent.

The company, in providing preliminary, partial results for the quarter, also said it had $821 million in cash on hand as of May 4. The department store chain will report full results on May 16.

Last week, Penney said it had lined up a five-year, $1.75 billion financing deal with Goldman Sachs, its latest move to shore up its finances as it looks to stabilize its operations.